Last updated on November 10th, 2023 at 03:29 pm
One of the ways to make money online in South Africa is becoming a domain reseller.
A domain reseller is a person or business that gets domain from a registrar and offers them to the people who need them at a profit.
It could also be someone who hopes to sell other associated services such as web hosting and web design service.
A domain name is an address that helps locate resources on the internet, and takes the format www.example.com.
This means that every website uses a domain name to be accessed, and provides a lucrative market for people who sell domain names.
In total, almost 600 websites are created every minute in the world.
South Africa is a market with a good internet penetration rate and a lot of domains per person, meaning that it gets a fair share of this market.
Thus, venturing into domain reseller business in South Africa is a promising venture.
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Is domain reselling profitable?
Domain reselling can be profitable, but it is not a get-rich-quick scheme. It takes time, effort, and knowledge to identify and acquire valuable domains that you can sell at a profit.
The profitability of domain reselling depends on a number of factors, including:
- The quality of the domains you acquire. Domains that are short, memorable, and relevant to popular industries are more likely to sell at a high price.
- The demand for the domains you acquire. Some domains are in higher demand than others, depending on current trends and events.
- Your marketing skills. You need to be able to market your domains effectively in order to attract potential buyers.
- The amount of time and effort you are willing to put into your business. Domain reselling is not a passive income stream. You need to actively work to find and sell domains in order to make a profit.
According to a recent study by Domain Name Wire, the average domain reseller made a profit of $2,000 in 2022.
However, the top 10% of domain resellers made over $100,000.
If you are interested in becoming a domain reseller, there are a few things you can do to increase your chances of success:
- Do your research. Learn about the different types of domains, the factors that affect their value, and the current market trends.
- Network with other domain resellers. This is a great way to learn from others and get your foot in the door.
- Start small. Don’t invest too much money upfront until you have a good understanding of the business.
- Be patient. It takes time to build a successful domain reselling business.
Overall, domain reselling can be a profitable business venture, but it is important to be realistic about your expectations and put in the hard work required to succeed.
How Domain Resellers Make Money
A domain reseller business is inspired by the Rands that one is likely to make by reselling domains.
This would be money from direct sales, or money made from associated services.
The first method is to charge a fee for the domain that you sell.
This means that for every domain you buy at 50 Rands, you can sell it at 100 Rands or even more.
The more the domains you can sell per day, the higher income you get.
The advantage with this method is that the process can be automated and done online.
The second method is to offer complimentary services that come with domain names.
When people buy domains, they are usually looking for other services as well, and these would be things like web hosting service, SSL certificates, web design and others.
This means that if you are a domain reseller, you can offer such services to South Africans who need them. This is a very lucrative part.
Becoming a Domain Reseller in South Africa
For one to become a domain reseller, you need to find a partner domain registrar, and have a mechanism for offering the services.
Here is what you need:
#1. A Website
Domain names are services that are offered online.
You need to have your ecommerce website offering the domain name that you are selling.
Design your website in a way that one can place their orders easily and if possible, automate the service.
Ensure that you have your website optimized to reach people in South Africa.
This means that you focus on Search engine optimization and creating the relevant content to make your website sell.
#2. A Partner Domain Registrar
A domain registrar is person who is authorized to sell domain names by the domain registry.
This can either be a local registrar accredited by ZACR which is the South African domain registry, or an international registrar who is accredited by ICANN.
The choice of a registrar is majorly informed by their pricing and the accessibility.
You need to work with a registrar who has automated their domain registration service and has an API that you can use to integrate with your website.
Best Domain registrars in South Africa
The following are the recommended providers of domain reseller services in South Africa.
- Xnelo (Pty) Limited
- Heztner Online
- Afrihost
- Truehost Cloud
- 1-Grid.com
- Mweb
- Amle Hosting
how to become a domain reseller in South Africa
To become a domain reseller in South Africa, you will need to:
- Register a business entity. This could be a sole proprietorship, close corporation, or company.
- Register a domain name. This can be done through a domain registrar accredited by the Internet Assigned Numbers Authority (IANA).
- Find a domain reseller agreement. This is a contract between you and the domain registrar that outlines your rights and responsibilities as a reseller.
- Set up a payment gateway. This will allow you to accept payments from your customers.
- Create a website and marketing materials. Your website should promote your domain reseller services and make it easy for customers to purchase domains from you.
- Market your services. You can do this through online and offline channels, such as search engine optimization, social media, and paid advertising.
Here are some additional tips for becoming a successful domain reseller in South Africa:
- Choose a niche. There are many different types of domains, such as generic top-level domains (gTLDs), country code top-level domains (ccTLDs), and new gTLDs. Choose a niche that you are interested in and knowledgeable about.
- Offer competitive pricing. Your prices should be competitive with other domain resellers in South Africa. You can use a domain pricing tool to compare prices and identify opportunities to offer discounts.
- Provide excellent customer service. Your customers should be able to contact you easily if they have any questions or problems. You should also offer a money-back guarantee.
- Keep up to date with the latest trends. The domain reseller industry is constantly changing, so it is important to keep up to date with the latest trends and developments. You can do this by reading industry publications and attending industry events.
Once you have registered a business entity, registered a domain name, and found a domain reseller agreement, you can start selling domains to your customers.
Be sure to promote your services and offer competitive pricing to attract customers.
How to market your domain reselling business in South Africa
Talking of customers, let’s talk about ways you can use to market your domain reselling business in South Africa.
Here are some tips on how to market your domain reselling business in South Africa:
1. Optimize your website for search engines
This will help people find your website when they search for domain reselling services in South Africa.
You can use a keyword research tool to identify the most relevant keywords to target.
2. Create content that is relevant to your target audience
This could include blog posts, articles, and infographics about domain reselling, domain investing, and the latest trends in the domain industry.
You can also create content that is specific to the South African market, such as blog posts about the best South African domain registrars or the most popular domain extensions in South Africa.
3. Promote your content on social media
Share your blog posts and other content on social media platforms like X (Twitter), LinkedIn, and Facebook.
You can also join relevant social media groups and participate in discussions.
4. Run paid advertising campaigns
You can use platforms like Google AdWords and Facebook Ads to target potential customers who are interested in domain reselling.
5. Offer discounts and promotions
This is a great way to attract new customers and increase sales.
You could offer discounts on bulk domain purchases or promotions for new customers.
6. Partner with other businesses in the industry
For example, you could partner with a web hosting company to offer a bundle of domain and web hosting services.
You could also partner with a marketing agency to help you promote your business.
7. Attend industry events
This is a great way to network with potential customers and partners.
You can also attend seminars and workshops to learn more about the domain industry and the latest trends.
Here are some additional tips that are specific to the South African market:
- Translate your website and marketing materials into Afrikaans. This will help you reach a wider audience in South Africa.
- Accept payments in South African Rands. This will make it easier for your customers to purchase domains from you.
- Partner with South African businesses and organizations. This is a great way to build relationships with potential customers and partners.
- Sponsor local events and conferences. This is a great way to get your brand name in front of potential customers.
By following these tips, you can market your domain reselling business effectively in South Africa and attract more customers.